Is CSR the key to unlocking debt financing during COVID-19? A multicountry perspective

Srivastava Jagriti (), Sampath Aravind () and Balagopal Gopalakrishnan
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Srivastava Jagriti: Indian Institute of Management Kozhikode
Sampath Aravind: Indian Institute of Management Kozhikode

No 481, Working papers from Indian Institute of Management Kozhikode

Abstract: In this study, we examine whether CSR engagement impacts the debt financing obtained by firms across the world. We find that firms with greater stakeholder engagement obtain higher debt financing during the COVID-19 pandemic period. The effect is more pronounced for less creditworthy firms, highlighting the importance of maintaining relationships with stakeholders. The positive association of CSR on debt financing during the pandemic period is higher for larger firms, asset-intensive firms, and firms from the developed markets. Our empirical analysis reinforces the importance of firms’ stakeholder engagement to mitigate the adverse impact of economic shocks.

Keywords: CSR; ESG; Stakeholder; COVID-19; Debt financing JEL classification: G01, G21, G32, H12, M14 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2021-10
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